Money & Banking

L&T Finance Q2 net declines 69%

Our BureauMumbai, October 18 Mumbai | Updated on October 18, 2019 Published on October 18, 2019

The consolidated net profit of diversified non-banking finance company L&T Finance Holdings fell 68.7 per cent to ₹174.51 crore in the second quarter, as it took the benefit of the lower corporate tax rate and deferred tax assets provisions.

It had a net profit of ₹559.12 crore in the July to September 2018 quarter. “LTFH is opting for lower corporate tax rate of 25.17 per cent, leading to lower tax liability from 2019-20 onwards,” it said in a statement on Friday. Its pre-deferred tax asset net profit is ₹647 crore for the second quarter this fiscal, which was an increase of 15 per cent from the ₹560 crore in the same period a year ago.

Its total lending book grew by 10 per cent in the second quarter of the fiscal to ₹1,00,258 crore, against ₹91,201 crore in the same period a year ago.

Net interest margin and fees stood at 6.86 per cent in the second quarter, against 6.86 per cent a year ago. Retailisation increased to 53 per cent in the quarter ended September 30from 47per cent a year ago.

Its total income grew to ₹ 3,711.85 crore in the second quarter of the fiscal. Average assets under management decreased by six per cent to ₹ 69,213 crore in the second quarter of the fiscal. The company said it maintains positive ALM gaps in all buckets up to one year and maintains liquidity of ₹11,607 crore.

Dinanath Dubhashi, Managing Director and CEO, LTFH, said: “The inherent strengths of our businesses, robust risk management framework, and strength due to parentage have been reaffirmed by multiple rating agencies by assigning AAA rating.”

Published on October 18, 2019
This article is closed for comments.
Please Email the Editor